Roni Cohen-Pavon Pleads Guilty to Manipulating Digitalย currency Market
Roni Cohen-Pavon, the former chief revenue officer at Celsius, has pleaded guilty to four criminal charges related to manipulating the market price of CEL, the primary digitalย currency announced by Celsius. The guilty plea wasย created before a federal court in Manhattan, New York. Unitedย States District Judge John Koeltl announced the ruling on Sep. 13. Cohen-Pavonโs sentencing is scheduled for Dec. 11, 2024.
States Against Celsius Founder and Collapse of the Company
Cohen-Pavonโs indictment in July 2024 was accompanied by fraud and conspiracy charges against Celsius founder Alex Mashinshky. Prosecutors from the Justice Department arguedย that Mashinshky conspired with Cohen-Pavon to artificially inflate CELโs price and deceive investors. It was likewise alleged that Mashinshky defrauded customers and provided false information about the companyโs financial situation.
Celsius Operation Described as a Ponzi Scheme
An independent court-appointed examinerโs report revealed that Celsius operated similar to a ponzi scheme under Mashinshkyโs leadership. Inย addition, records released during the companyโs bankruptcy proceeding in 2022 showed that plentyย of executives, including the former CEO, withdrew large sums from Celsius accounts just before filing for bankruptcy. Mashinshky was arrested and his bail was set at $40 million.
Legal Actions and Denial of Charges
Mashinshky faces legal action from numerous regulators, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC). New Yorkโs Attorney General Letitia James likewise accused him of violating state regulations. Mashinshky has pleaded not guilty and his lawyers have requested the dismissal of the FTCโs case against him, asserting that he is wrongly accused.
Hot Take: Former Celsius Executive Pleads Guilty to Cryptocurrency Market Manipulation
Roni Cohen-Pavon, the former chief revenue officer at Celsius, has entered a guilty plea for charges related to market manipulation of CEL, the primary digitalย currency announced by Celsius. This case is part of a broader legal battle involving Celsius founder Alex Mashinshky, who faces fraud and conspiracy charges. The states against Mashinshky include artificially inflating CELโs price and deceiving investors, as well as defrauding customers and misrepresenting the companyโs financial status. The collapse of Celsius has been likened to a ponzi scheme, with executives withdrawing wholeย lotย of amounts of money before the company filed for bankruptcy. Legal actions from multiple regulators and accusations from New Yorkโs Attorney General further complicate this high-profile case.
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